RBI's JUNE 2022 MONETARY POLICY ON EXPECTED LINES

Wednesday, June 15 2022

In line with our expectations, the RBI hiked the Repo rate by 50 bps to 4.90 per cent and withdrew the accommodative policy to contain inflation breaching the MPC mandated threshold of 4 per cent +/-2 per cent. Simultaneously, the standing deposits facility for liquidity absorption and marginal standing facility for extra-liquidity creation, beyond LAF, were revised to 4.65 per cent and 5.15 per cent, respectively. 

With COVID 19 almost over, India is on a high growth path once again. However, there are heightened geopolitical dynamics because of Russia-Ukraine war, high fuel prices, elevated logistics cost, volatile capital flows, exchange rate volatility, scramble for safe haven and attendant correction in asset prices.

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